Key facts
- The ten largest wealth firms in the UK now serve 89% of the discretionary client base.
- This market share has increased from 74% in the prior tax year.
- Total assets under management (AUM) for these large firms decreased to 59% from 62%.
- Over 40% of wealth firms plan acquisitions or significant growth in the next two years.
- Nearly 20% of firms are considering selling or winding down their client base.
The UK's largest wealth management firms have significantly increased their market dominance, now serving 89% of the discretionary client base, a substantial rise from 74% in the previous tax year. This trend is fueled by ongoing consolidation within the sector, where smaller firms are being acquired by larger competitors or private equity firms. Increased regulatory burdens and the need for cost efficiencies are pushing larger groups to scale up and outsource operations. Notable transactions include Natwest's £2.7bn acquisition of Evelyn Partners and Cannord Wealth's efforts to sell its UK wealth division. Rob Hillock, head of financial planning at Broadstone, commented that while scale can support investment in technology and compliance, the ultimate test is whether larger platforms can enhance client experience without sacrificing personal service. Despite the growing client numbers, the largest firms saw their share of total assets under management (AUM) decrease by three percentage points to 59% in the 2024/25 tax year, attributed to smaller firms serving fewer ultra-high net worth clients. The Financial Conduct Authority (FCA) noted that over 40% of wealth firms plan further acquisitions or substantial growth, while nearly 20% are considering winding down or selling parts of their business. The regulator cautioned that rapid growth through consolidation, if not managed effectively, can lead to poor client outcomes, including service issues, business continuity weaknesses, and disorderly failures, emphasizing the need for governance and controls to keep pace with expansion.